Real Estate Minute: Think About US Taxes When Living Abroad

Transcript:
My friend Tom Kelly has started writing a series of books about buying second homes in foreign countries. His first book, “CASHING IN ON A SECOND HOME IN MEXICO,” gives readers tips on navigating the maze of buying real estate in another country – especially if you plan to retire there.

If you find it tough to file your federal tax forms now, just try living or retiring abroad. Newly signed tax laws include something called “stacking provisions,” which allow your excluded foreign income to be counted when calculating your overall rate.

The bottom line – Congratulations! You’re in a higher or even much higher tax bracket.